FederalDaily - January 27, 2006
Postal Reform Bill Stirs Controversy
The Board of Governors for the U.S. Postal Service (USPS) is publicly opposing
the Senate Postal Reform Bill, S. 662, it announced in a letter to Sen. Susan
Collins, R-Maine, and the Senate Homeland Security and Governmental Affairs
Committee on Tuesday. The board said its primary concerns are that the bill
would: force a rate increase, limit flexibility to create revenue, and establish
a regulatory commission capable of overriding USPS decisions. “We believe
there are critical elements missing from this bill, as well as numerous burdensome
provisions that would make it extremely difficult for the Postal Service to
function in a modern, competitive environment,” the board stated in the
letter. In response, Collins and Sen. Thomas Carper, D-Del., coauthors of the
bill, said, “We are extremely troubled and disappointed that at the very
last minute, the Postal Service is attempting to block action on our bill.” The
senators argued that nothing in the bill would lead to rate increases. “We
join the dozens of groups who’ve endorsed S. 662 in urging the Senate
to move this process along,” the senators said.
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DoD Raises $15.1 Million for CFC
The Department of Defense (DoD) set a contribution record for the Combined
Federal Campaign (CFC) raising $15.1 million for 2005, $2.3 million above the
department’s goal. Earlier this week, DoD held a ceremony at the Pentagon
recognizing the fundraising efforts. “By [making] all of these contributions,
you have enabled the Department of Defense to maintain its distinction as the
largest single charitable organization in the world,” said Michael B.
Donley, director of administration and management for the Office of the Secretary
of Defense. DoD’s participation rate for the year was 60 percent, 10
percent higher than the average of other federal agencies.
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Army, Marines Save Millions
The Department of Defense (DoD) has announced savings of almost $10 million
for the Army and Marines on modular fuel storage and distribution systems over
the next four years. The Defense Energy Support Center (DESC) is the primary
provider of fuel and other energy products and services to DoD and other federal
agencies. In April 2005, a DESC team noticed the Marines were preparing to
post a draft request for proposals for a deployable fuel distribution system
similar to one the Army had just announced a contract award for. The team recognized
an opportunity to cut costs to the military services by combining the purchases
under one contract and purchasing similar systems for both services. The Army
estimates it will save 2 percent, or $3.7 million, in overall program costs
over the life of the contract. The Marines will save roughly 12 percent of
their program costs, or an estimated $6.2 million.
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FEMA’s Flood Insurance Program Hit Hard
The National Flood Insurance Program (NFIP) is managed by the Federal Emergency
Management Agency (FEMA). The program provides property owners with some insurance
coverage for flood damage. A new Government Accountability
Office (GAO) report said FEMA estimates that Hurricanes Katrina, Rita and Wilma
will generate claims and payments of about $23 billion—far surpassing
the total claims paid in the entire history of the NFIP. GAO said the NFIP,
by design, is not actuarially sound. The program does not collect sufficient
premium income to build reserves to meet long-term future expected flood losses.
In November 2005, FEMA’s authority to borrow from the Treasury was increased
from $1.5 billion to $18.5 billion through fiscal year 2008 to help pay claims
from the 2005 hurricane season. GAO said it is highly unlikely that the NFIP
as presently funded could generate sufficient revenues to repay a debt of this
size.
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